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The deal is "a poor strategic fit," said
Eminence Capital LLC, which has been pushing for a merger
between Jos. A. Bank and rival Men's Wearhouse Inc <MW.N>.
Eminence is the top shareholder in Men's Wearhouse. Jos. A. Bank and Men's Wearhouse — both of whom are known for
renting and selling tuxedos — have made and spurned offers for
each other over the past few months. Earlier this month, Jos. A
Bank rejected a $1.6 billion offer from Men's Wearhouse. Last week, Jos. A. Bank offered to buy Eddie Bauer for $825
million, which would not only keep it independent, but also mark
its move into women's apparel and footwear. "Not only have you turned your back on an acquirer prepared to
pay a substantial premium for the company, but you plan to
deploy significant and valuable company resources into a
troubling and risky sector ... in which you have absolutely no
experience," Eminence said in a letter to Jos. A. Bank on
Tuesday. More than 40 percent of Eddie Bauer's sales are to women and
virtually all of its products are outside of Jos. A. Bank's core
men's tailored clothing business, said the New-York based asset
management firm. Jos. A. Bank was not immediately available for comment. The company's shares were down 1.8 percent at $54.13 in
afternoon trading on the Nasdaq. Men's Wearhouse shares were up
slightly at $44.2 on the New York Stock Exchange. (Reporting by Siddharth Cavale and Maria Ajit Thomas in Bangalore; editing by Savio D'Souza) [© 2014 Thomson Reuters. All rights reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
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